Q2 global crude inventory surplus should be slashed: Kuwait oil minister

Dubai — Kuwait's oil minister emphasized Tuesday the importance of dealing with the global crude inventory surplus expected in the second quarter due to the impact of the deadly coronavirus on oil markets, as OPEC+ members prepare to meet in Vienna to discuss potential further output cuts.

The 23-member alliance of OPEC and other global oil producers, led by Saudi Arabia and Russia, will hold "marathon" talks this week in Vienna to reach an agreement on the best possible means "to restore stability and balance to the oil markets," Khaled al-Fadhel told the state-run Kuwait News Agency, or KUNA, on Tuesday prior to his arrival in the Austrian capital.

The minister also expressed optimism in reaching a positive result during the meeting this week, as well as continued cooperation between OPEC+ members, according to KUNA.

OPEC+ ministers will meet March 5-6 to mull cutting output on top of the 1.7 million b/d they are collectively trimming from global markets through to March. A technical committee recommended in February that the alliance cut output by a further 600,000 b/d to cope with lower oil demand due to the coronavirus outbreak, which has crimped growth in top oil importer China.

Oil prices last week had their worst weekly loss since the 2008 financial crisis as coronavirus cases multiplied outside China, particularly in Iran, South Korea and Italy, stoking fears of a global contagion and weak growth in 2020.